Bitcoin, Ethereum, XRP Decline As U.S. Fed Hike Odds Rise

Bitcoin, Ethereum, XRP Decline as U.S. Fed Hike Odds Rise

Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), XRP and other top cryptocurrencies were trading under pressure on Sunday as the odds of a US Federal Reserve interest rate hike increased.

The global cryptocurrency market experienced a mild correction, with Bitcoin trading at $76,654.01 and Ethereum dropping to $2,481.77.  Binance Coin is down to $717, while XRP is hovering around $1.35 during the trading session on Sunday.

The total crypto market capitalisation declined by 1.13% to $2.61 trillion over 24 hours. Sector performance indicates broad weakness, with PayFi, AI, and Layer1 sectors shedding 2.40%, 2.36%, and 2.35% of their respective market shares, while DeFi and CeFi shares also contracted by 2.19% and 2.15%.

Market analysts said rising expectations of a Federal Reserve rate hike this week are tightening financial conditions and weighing on Bitcoin and the broader crypto market.

US inflation for August came in hotter than expected, with core consumer price index (CPI) rising about 0.3% month over month, above consensus, and energy prices climbing as Brent crude moved above $100 per barrel.

This pushed CME and futures-based measures of September hike odds into the low- to mid-80 per cent range, with several major banks now forecasting a 25-basis-point move at the September 15 to 16 meeting, as reported by Goldman Sachs and others in recent coverage of Fed expectations.